Taiwan shares edge up as TSMC falls from intraday high

Taipei, Sept. 9 (CNA) Shares in Taiwan closed slightly higher Wednesday after giving up early gains amid caution ahead of the scheduled release of U.S. inflation data due out later this week, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 77.58 points, or 0.16 percent, at 47,183.36 after moving between 47,060.78 and 47,548.26. Turnover totaled NT$773.51 billion (US$24.56 billion), down from NT$922.66 billion on Tuesday.

The Taiex moved higher early in the trading session on a rally in tech stocks, which benefited from a 1.30 percent increase in the Philadelphia Semiconductor Index overnight, dealers said.

"But the momentum could not be sustained as profit-taking set in when the Taiex moved closer to the all-time intraday high of 48,218 points seen in June," Mega International Investment Services analyst Alex Huang said.

"More importantly, market sentiment stayed cautious ahead of the release of U.S. consumer price index data, and investors tended to pocket their earlier gains, with TSMC in focus," Huang said. "The reduced turnover also reflected such caution."

Despite a 2.35 percent increase in its American depositary receipts overnight, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for more than 40 percent of total market value, fell 0.20 percent to close at NT$2,465.00.

That was down from the day's high of NT$2,490.00.

Other major tech stocks also faced profit-taking, with smartphone IC designer MediaTek Inc. down 1.80 percent at NT$4,625.00 and power management solution provider Delta Electronics Inc. down 0.55 percent at NT$1,795.00.

iPhone assembler and AI server maker Hon Hai Precision Industry Co. ended up 0.20 percent at NT$252.00, off a high of NT$254.00.

"Funds rotating out of large-cap semiconductor stocks flocked into selected electronic component stocks, including printed circuit board makers," Huang said.

Nan Ya PCB Co. soared 8.29 percent to close at NT$1,110.00, while Unimicron Technology Corp. gained 4.09 percent to end at NT$993.00.

After rising 1.20 percent Tuesday, the financial sector fell 1.47 percent Wednesday, with Fubon Financial Holding Co. down 1.34 percent at NT$147.00 and Cathay Financial Holding Co. down 2.64 percent at NT$110.50.

Dealers said buying also rotated into certain old-economy stocks, led by the four major companies in the Formosa Plastics Group, amid a spike in crude oil prices.

Formosa Petrochemical Corp. surged 10 percent, the maximum daily increase, to close at NT$87.50. Formosa Plastics Corp. gained 2.46 percent to end at NT$66.70, Formosa Chemicals & Fibre Corp. rose 1.70 percent to NT$7.80, and Nan Ya Plastics Corp. ended up 0.64 percent at NT$236.50.

"I expect turnover will continue to stay low until the U.S. Federal Reserve wraps up its policymaking meeting next Wednesday (U.S. time), so the Taiex is unlikely to break out of its current consolidation," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$20.92 billion of shares on the main board Wednesday.

(By Frances Huang)

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